10-08-2015, 05:05 AM
A stock is a unit or say a small part of a company that can be dealt available on the market. When you own a stock, it is then most important to know that you are generally known as a shareholder or a stockholder. In real significance, it is a representation of the amount of a organization that you own. The advantage of having a stock in a organization is that whenever the organization earnings, you advantage as well. It also gives you the right to make choices that can impact the organization. Index funds and mutual funds have a lot in common. In both kinds of investments, the fund that you invest in represents a number of stocks selected for their high return value. You don't buy an individual stock, you buy a share of these stocks as a whole. Your investment sees returns depending on how well the whole group does.